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https://uk.finance.yahoo.com/news/johnson-johnsons-greed-helped-fuel-u-opioid-crisis-005725753--finance.html

Lawsuit against J&J over the opioid crisis.  Nearly 50,000 overdose-related deaths in America in 2017 alone.  Article compares potential outcome to the settlement made with tobacco companies (>$200 bln)

Might be a good one to short.  Almost feel ghoulish profiting from things like this.

Edited by dmedin
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2 hours ago, dmedin said:

Volume is picking up on the downside again.  Might be a good short now.  :)

JNJ-Daily.thumb.png.c6eb297d9ed667d5dce19ca28d5f223b.png

Has found support here recently, if looking to short I'd wait for the break though looking at the last volume bar it may turn out to be a test and rejection of 13800 before a move back up to test the recent high.

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10 minutes ago, Caseynotes said:

That market looks prone to repeated very sudden and serious drops, what's causing that?

I imagine it is manipulation by the big boys.  I see what you're saying though.  Probably best to stay away from it and not to trade.

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1 minute ago, dmedin said:

 

Yes, I can just leave it to do its thing.  ;)

I will exit if prices goes back above the 'pivot'!

ok, but isn't that lacking a certain something, I mean that could be a place for an initial stop loss but would you really want to see price race away in you favour 100s of points and then return all the way back to stop you out for a loss? just asking

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1 hour ago, Caseynotes said:

ok, but isn't that lacking a certain something, I mean that could be a place for an initial stop loss but would you really want to see price race away in you favour 100s of points and then return all the way back to stop you out for a loss? just asking

 

That's a really good question.  Normally I'd move the stop loss just above break even if it moves far enough away in order to give it more room to breathe, and then occasionally review the trade to look for candlestick patterns etc indicating a reversal or pullback and try to take profits.

Edited by dmedin
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2 hours ago, dmedin said:

 

That's a really good question.  Normally I'd move the stop loss just above break even if it moves far enough away in order to give it more room to breathe, and then occasionally review the trade to look for candlestick patterns etc indicating a reversal or pullback and try to take profits.

An exit strategy adds information for deciding on the entry, where is price looking to get to, how long am I willing to sign on for. It encourages you to look ahead realistically rather than just hoping for a parabolic move after entry.

Consider trailing stops; based on MAs, ATR, set number of points away, manual trail following up to the next higher low.

Or set targets such as; S/R levels, pivot S/R, set number of points away, risk reward ratio eg 1:2.

Or, as you suggest floating targets such as the next reversal chart pattern, indicator cross overs (MA, MACD etc).

If you have already decided on how to get out you are not going to be so worried about what price does in the meantime.  

 

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